Subject:
Title
Public Hearing, Re: Defeasance of a United States Department of Housing and Urban Development (HUD) Section 108 Loan ($1,064,646.77 Grant Funds)
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Fiscal Impact:
Defeasement of a Section 108 loan (West Canaveral Groves B-14-UC-12-0011-A) will be accomplished by utilizing $1,064,646.77 in Community Development Block Grant (CDBG) funds already awarded to Brevard County. This action will not impact currently approved projects or the solicitation of future projects. There will be no impact to the General Fund.
Dept/Office:
Housing and Human Services
Requested Action:
Recommendation
It is requested that the Board of County Commissioners:
1. authorize the Housing and Human Services Department Director to take all steps necessary (including endorsing documents) to complete the defeasement of a United States Department of Housing and Urban Development (HUD) Section 108 (West Canaveral Groves B-14-UC-12-0011-A) loan upon approval of Risk Management and the County Attorney's Office and
2. authorize the County Manager to approve any related budget change requests.
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Summary Explanation and Background:
Under the provisions of 24 CFR 570.902 of the Community Development Block Grant (CDBG) regulations, a grantee is considered to be timely, if 60 days prior (August 2nd of every year) to the end of the grantee's program year, the balance in its line-of-credit (LOC) does not exceed 1.5 times the annual grant. Currently, our LOC exceeds this threshold due to issues regarding contract regulations and private development impacting previously approved projects (for example, a more than 1,000 linear foot sidewalk project was impacted by the development of a subdivision, which has caused delays due to school busing issues and added a railroad crossing which requires additional state review). These factors have hindered requirements related to "timeliness" as defined by HUD. The consequence of violating the timeliness requirement could be a reduction in th...
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